Yahoo says it was trying to avoid the "cost and distraction that inevitably accompanies a proxy fight," but Loeb "rejected this proposal and declined to end Third Point’s solicitation with respect to its own four candidates unless he personally was appointed to the Board."

Yahoo concluded that "appointing Mr. Loeb to the Board is not in the best interest of the Company and its shareholders."

This means five new board members have been added since the beginning of the year -- in February, three board members stepped down, and former Rovi CEO Fred Amoroso and LiveOpsChairman (and former CEO) Maynard Webb joined. Chairman Roy Bostock also said he'd step down, but is sticking around to dispose of the company's Asian assets, according to Sarah Lacy at PandoDaily.